10 AI Stocks That Could Go Parabolic According to Financial Media

4. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT) is a Washington-based technology company. The firm has committed to a large capex to fund AI ventures and Wall Street is already starting to see the return on these investments. Evercore ISI analyst Kirk Materne recently noted the solid quarterly results of the tech giant, highlighting the strong commercial bookings and management comments about positive demand signals. The investor note also underlined the expectation that Azure growth would accelerate in the second half of the year as more AI capacity came online. The analyst detailed that the company remained well positioned to deliver durable top-and-bottom-line growth.

Microsoft Corporation (NASDAQ:MSFT) is said to be considering another large investment in AI startup OpenAI. Back in 2023, the tech giant had invested $10 billion in the California-based AI firm. The new funding round is likely to take the valuation of OpenAI to more than $100 billion, with Apple and NVIDIA also considering investments. Reports indicate that Apple could partner with OpenAI to create an offering to rival Google in internet search.